High Growth Tech Stocks to Watch in Japan: October 2024

As Japan's stock markets gain momentum, driven by dovish commentary from the Bank of Japan and optimism surrounding China's stimulus measures, investors are increasingly looking towards high-growth tech stocks as potential opportunities. In this favorable economic climate, a good stock is often characterized by strong fundamentals, innovative technologies, and the ability to capitalize on emerging market trends.


Top 10 High Growth Tech Companies In Japan
Name Revenue Growth Earnings Growth Growth Rating
Hottolink 50.99% 61.55% ★★★★★★
Material Group 17.82% 28.74% ★★★★★☆
eWeLLLtd 26.52% 27.53% ★★★★★★
Medley 24.98% 30.36% ★★★★★★
f-code 22.70% 22.62% ★★★★★☆
Kanamic NetworkLTD 20.75% 28.25% ★★★★★★
Bengo4.comInc 20.76% 46.76% ★★★★★★
Mental Health TechnologiesLtd 27.88% 79.61% ★★★★★★
ExaWizards 21.96% 75.16% ★★★★★★
Money Forward 20.68% 68.12% ★★★★★★

Click here to see the full list of 122 stocks from our Japanese High Growth Tech and AI Stocks screener.

Let's explore several standout options from the results in the screener.

OMRON (TSE:6645)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: OMRON Corporation operates in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide with a market cap of ¥1.31 trillion.
Operations: OMRON Corporation generates revenue primarily from its Industrial Automation Business (¥373.70 billion), Social Systems, Solutions and Service Business (¥156.85 billion), Healthcare Business (¥150.40 billion), and Devices & Module Solutions Business (¥143.69 billion).
OMRON, navigating through a challenging landscape, has demonstrated a commitment to innovation with R&D expenses reflecting substantial investment in future technologies. Despite being currently unprofitable, the company is on a trajectory for growth with earnings expected to surge by 46.2% annually. This forecast is significantly bolstered by its strategic focus on sectors likely to drive future industry standards and practices. Moreover, OMRON's revenue growth at 5.6% annually outpaces the Japanese market average of 4.2%, indicating robust potential in its operational strategy and market positioning. The firm's recent Q1 earnings call highlighted these advancements alongside plans for further technological integration across its product lines, setting a promising stage for upcoming fiscal periods.


Taiyo Yuden (TSE:6976)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components in Japan, China, Hong Kong, and internationally with a market cap of ¥383.98 billion.
Operations: The company primarily generates revenue from its Electronic Components Business, which accounted for ¥331.17 billion. The net profit margin is a key indicator to consider when evaluating the company's financial health.
Taiyo Yuden has demonstrated a commitment to innovation with R&D expenses rising to 6.7% of revenue, reflecting its strategic focus to stay competitive in the high-tech Japanese market. Despite a forecasted revenue growth of 6.7% per year, which slightly outpaces the market average of 4.2%, earnings are expected to surge by an impressive 25.7% annually. This growth is underpinned by recent initiatives including a significant cash dividend announced for late September and ongoing investments in technology development, positioning Taiyo Yuden well amidst evolving industry demands and client needs like those from major tech firms.


Kadokawa (TSE:9468)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Kadokawa Corporation operates as an entertainment company in Japan, with a market cap of ¥434.99 billion.
Operations: The company generates revenue primarily from its Publication segment (¥143.28 billion) and Animation/Film segment (¥46.36 billion), with additional contributions from Game, Web Service, and Education/Edtech segments.
Kadokawa has carved a niche in Japan's tech landscape, with an impressive 21.5% projected annual earnings growth over the next three years, outstripping the broader market's 8.7%. This growth trajectory is bolstered by strategic R&D investments, which now account for 6.7% of its revenue, underscoring a commitment to innovation despite a competitive environment. Moreover, recent initiatives have expanded its digital content offerings, capturing more of the burgeoning online entertainment market—a move that not only diversifies its revenue streams but also aligns with shifting consumer preferences.


In conclusion, the high-growth tech stocks mentioned above offer compelling investment opportunities in Japan's thriving tech sector. With strong fundamentals, innovative technologies, and a focus on emerging market trends, these companies are well-positioned to capitalize on the favorable economic climate and drive significant growth in the coming years. As investors seek to diversify their portfolios and tap into Japan's tech boom, these stocks should be on their radar.